Cryptocurrency probe hunts online scams

THE Australian Securities and Investments Commission is working with the FBI for the first time on an “open criminal investigation” into cryptocurrency products.

ASIC Commissioner John Price confirmed the joint international investigation was under way, telling News Corp Australia it is focused on a “range of people” who are alleged to be involved.

The new probe comes as he issued a warning to consumers to be vigilant when investing money in cryptocurrencies.

“Be very careful investing in crypto products unless you’re prepared to lose all of your money,” he said.

“There is concern there are a lot of scams out there. The main thing these cryptocurrencies are alleged to be used for is money laundering.”

Data obtained by News Corp from Independent Reserve, a cryptocurrency exchange platform in Australia and New Zealand, revealed how much consumers are spending on cryptocurrencies like Bitcoin, Ripple and Ether.

In Tasmania, the top crypto-buying suburb is Goodwood, followed by Launceston, Berriedale, Hobart, Sandy Bay, Mornington, Moonah, New Town, Kingston and Burnie.

Over the past year, $18 million was traded on the platform. Independent Reserve CEO Adrian Przelozny said trading among retirees has doubled since January last year and Millennials account for more than 50 per cent of trades. There has also been strong growth from self-managed super funds (SMSF).

“People are treating it more as an asset class … there are people using it as a currency but probably not as much as people just buying it and holding it,” he said.

“With Bitcoin people like the fact it is quite scarce and predictable in the supply … kind of like the way people like investing in gold, the scarcity attracts people.”